A new legal framework on the procedures for recovery of companies and insolvency came into force on 12 May 2021.
This law was long awaited by both national and international economic operators, and entails a significant change to the prior framework, which had been in force since 1962.
In particular, this new framework will allow companies in financial distress, on their own initiative or on the initiative of their creditors, to resort to either judicial or extra-judicial recovery mechanisms. The rules governing insolvency procedures have also been updated and are now closer to international standards, including the possibility of fresh-start for natural persons.
The new framework also creates mechanisms aimed at streamlining transnational insolvency procedures, such as the simplification of the recognition of foreign recovery and insolvency procedures, the possibility for the court to adopt conservatory measures over assets located in-country on application of a foreign receiver, the suspension of pending court cases that may affect the company’s assets, the communication of Angolan courts with foreign courts directly or through foreign receivers, among others.
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